Ally Bank is the banking subsidiary of GMAC (General Motors Acceptance Corporation). The bank provides savings account and certificates of deposit (CD) online. Financial experts claim Ally Bank rates are among the best in the industry.
Ally Bank Rates for Products
Ally Bank rates are compounded daily on each product for maximum benefit to consumers. Interest rates as applicable to Ally Bank products are (based on data collected in 2009):
- Classic CD: This is a high-yield CD product from Ally Bank which earns a fixed annual percentage yield (APY) of 2%. Classic CDs provide the auto renewal option to customers, where the deposit is automatically renewed for the next term after maturity. The table below offers a better understanding of interest rate accumulation on a deposit of $50,000.
|
Term
|
Rate %
|
APY %
|
|
3 months
|
1.24
|
1.25
|
|
6 months
|
1.64
|
1.65
|
|
9 months
|
1.54
|
1.55
|
|
12 months
|
1.98
|
2.00
|
|
18 months
|
2.03
|
2.05
|
|
2 years
|
2.32
|
2.35
|
|
3 years
|
2.66
|
2.70
|
|
5 years
|
3.25
|
3.30
|
- No penalty CD: Ally Bank rates for no penalty CDs are less than the rated for classic CDs. It offers an APY of 1.85% for nine months. This means that a deposit of $50,000 will potentially earn $689 in a nine-month term. However, no penalty CDs allow the accountholder to withdraw the entire deposit amount before maturity without any penalty.
- Online savings account: This savings account offers online benefits with an annual interest rate of 1.73% and an APY of 1.75%.
- Money market savings account: The interest rate is 1.69% and the APY is 1.70%.
Ally Bank also offers the best rate guarantee period program for all CD customers. Under this program, the bank guarantees to provide the best Ally Bank rates within ten days of opening the account.
Ally Bank Rates: Benefits
Apart from attractive Ally Bank rates, the bank offers exclusive benefits, such as:
- No monthly fees for banking services
- Open savings account of CDs with $0
- No minimum balance required
The bank has installed a high-security environment for the purpose of online banking. It offers a 24x7 hotline and live chat for quality customer care services.